Texas Senate Bill SB1076

Texas 2019 - 86th Regular

Caption

Relating to imposing an additional fee for the registration of an alternatively fueled vehicle.

Impact

The implementation of this additional fee could affect vehicle owners who opt for environmentally friendly options, potentially dissuading the adoption of alternatively fueled vehicles. Proponents of the bill argue that it is necessary to fairly assess costs associated with road maintenance that these vehicles may otherwise be exempt from. As state infrastructure relies heavily on fuel taxes, the introduction of a registration fee is seen as a step towards ensuring that all vehicle owners contribute to road upkeep, helping to align their existing tax systems with modern vehicle technology.

Summary

Senate Bill 1076 aims to impose an additional fee on the registration of alternatively fueled vehicles in Texas. The bill updates Section 502.198 of the Transportation Code to include provisions specific to these types of vehicles. It mandates that upon registration or renewal, owners of alternatively fueled vehicles must pay an additional fee based on a calculation linked to the taxes applicable to conventional gas or diesel vehicles, amounting to 75 to 85 percent of the average tax rate for that class of vehicle. Notably, the bill specifies that these fees will be deposited into the state highway fund.

Contention

Despite the intended fairness in charging alternatively fueled vehicles, the bill may face criticism from environmental advocates and vehicle owners who may be deterred from purchasing greener vehicles due to the added fee. Critics may argue that this additional financial burden contradicts state efforts to promote cleaner energy alternatives and could ultimately hinder the environmental benefits those vehicles are supposed to provide. The discussions surrounding the bill will likely highlight the balance between maintaining state revenues and promoting sustainable transportation options.